EUR/JPY has been quite indecisive recently having impulsive bearish pressure since the price broke below 134.50 support area. EUR has been quite positive with the economic reports today which did not quite helped the currency to sustain the bullish momentum against JPY. Recently JPY Trade Balance report was published with significant increase to 0.37T from the previous figure of 0.09T which was expected to be at 0.14T. The positive JPY economic report did not quite help the currency to sustain its impulsive bearish momentum, moreover lead to indecision above the support of 131.50 area. On the other hand, today EUR German PPI report was published with an increase to 0.5% from the previous value of 0.2% which was expected to be at 0.3%, German ZEW Economic Sentiment report was published with better than expected figure of 17.8 decreasing from the previous figure of 20.4 which was expected to be at 16.0, ZEW Economic Sentiment was also published better than expected at 29.3 decreasing from the 31.8 which was expected to be at 28.4 and Consumer Confidence which is yet to be published is expected to be unchanged at 1. Moreover, throughout the day ECOFIN Meeting is going to be held which is expected to have minimal impact on the gains of EUR for the coming days. As of the current scenario, JPY is expected to gain certain momentum against EUR in the coming days of the week having better forecasts of the economic reports to be published while EUR is expected to struggle with the mixed economic reports for the coming days of the week until EUR comes with a better than expected high impact report to recover its grounds.
Now let us look at the technical view. The price is currently expected to proceed lower towards 131.50 price area before showing any bullish intervention. A daily close with bearish rejection off the 131.50 price area is expected to lead to further bullish pressure on the pair with the target towards 134.50 again in the future. As the price remains above 131.50 the price is expected to bounce higher in the coming days.
